Arabian Auto plans $81m expansion in Dubai

Dubai, May 13, 2013

Arabian Automobiles, the largest distributor in the Gulf for Nissan, Infiniti and Renault, plans to invest Dh300 million ($81.6 million) to expand its automobiles and spare parts distribution centre in Dubai.

With this, the flagship company of the AW Rostamani Group will expand its current Dubai Industrial City facility of three million sq ft by an additional 1.5 million sq ft, a statement said.

The expansion is a result of the company’s plan to increase its volume by 25 per cent, which is 45,000 units in 2013 – well above the automobile market indicator, according to the statement.

The new expanded facility will have 20 repositories which will serve as their state-of the art spare part distribution centre; with a total area of 200,000 sq ft, and an additional functional storage space of 600,000 sq ft.

The company also invested in storage facilities for allied companies’ products that include three warehouses with a total area of 30,000 sq ft, and storage space of up to 60,000 sq ft.

Michel Ayat, CEO of Arabian Automobiles, said: “Dubai Industrial City is an ideal logistics hub offering exceptional services and facilities, and it allows companies to operate at optimal capacity. It is also able to accommodate any future expansion needs a business might have.”

“We have chosen Dubai Industrial City as a home for AW Rostamani Group’s logistics center, because it enables us to manage a stockpile of 15,000 units in a single location where we can also access the required support from workshops for the technical inspection of automobiles, installation of parts and body maintenance, as well as enjoying excellent logistics facilities.

“The availability of space, high-end facilities, exceptional services, logistical support and accessibility that Dubai Industrial City provides are all factors that will help us to achieve our business objectives. Dubai Industrial City provides suitable environment for companies such as us to offer high levels of customer service,” he added.

Abdullah Belhoul, managing director of Dubai Industrial City, said: "We are delighted that Arabian Automobiles has chosen to expand its presence within Dubai Industrial City. The decision is a clear signal that Dubai Industrial City serves as a destination of choice for industrial and logistical operations at both the local and regional level.”

Dubai Industrial City is considered the largest industrial real estate project in Dubai and is spread across 55 sq km of land. – TradeArabia News Service